LAHORE – The LPG Association of Pakistan has rejected claims made by CNG Association Chairman Ghayas Paracha that shortage of CNG is being created to benefit the LPG sector.

Spokesman for the LPG Association of Pakistan, Belal Jabbar through a statement on Monday said that LPG was the only fuel that has never enjoyed a government subsidy. Its price had remained linked with the international benchmark price of Saudi Aramco CP since 2007 and continues to remain volatile, he added.

The CNG sector on the other hand, he claimed, had for years thrived on a subsidised rate of natural gas and had received protection and guaranteed profit margins by having its price fixed at a discount to petrol.

“LPG has had to compete with petrol and other fuels without the benefit of a guaranteed profit margin or protection. Despite efforts by the CNG sector to thwart the development of LPG as autogas, the LPG industry’s relentless efforts to establish autogas stations have become a reality. Four LPG Autogas stations are currently operational with licences issued to 24 more that are in various phases of construction.”

“There are over 15 million vehicles operating on LPG globally as opposed to 11 million on CNG. LPG is considered more environment friendly than CNG and is far safer due to its lower operating pressure of 200 psi versus that of CNG at 3600 psi” said Belal. According to the LPGAP, 40,000 tons of LPG is available at the port, waiting to be sold.

He said that total storage capacity at import terminals was only 13,000 tons, out of which 6,000 tons was currently unutilised.

“We understand the frustration of the CNG sector, but are extremely disappointed with their false claims and expect they will exercise more prudence before making public denunciations against the LPG industry about which they have no knowledge” said Belal.